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tv   Real Money With Ali Velshi  Al Jazeera  July 29, 2014 5:00am-6:01am EDT

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and empty pockets >> how much money do you owe people >> around $350,000 >> praying on the vulnerable >> i have nothing to hide, if i was a scam artist, i would have cut and run from here >> surrogacy inc. an american tonight investigative report only on al jazeera america % met care and social security will rount of money unless lawmakers make some changes. i'll tell you what needs to happen to both programs. also $2 store chains join forces. plus if you have been out there on the pavement looking for a job, i'll tell you about a field that is hungry for help with some 600,000 positions to fill right now. i'm ali velshi. and this is "real money."
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♪ this is "real money," you are the most important part of the show, tell me what is on your mind by tweeting me or hitting me up on facebook. social security and medicare are two huge government programs that benefit millions of americans. both are headed for possible extinction. these programs are so big that together they take up an estimated 44% of all federal spending each year, and social security and medicare benefits are funded by taxes that americans pay out of their paychecks every pay period, not income taxes. but in a new report today, government forecasters projected revenues from those payroll taxes won't be enough to fund 100% of medicare benefits starting in 2030.
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medicare will only be able to pay 85% of benefits after 2030, and decline to 75% by 2050. by the way this is all a positive development. only a few years ago forecasters were saying that medicare would hit a revenue crunch as early as 2016. what has changed? obamacare, researchers say it is slowing down the rise in medical costs. the forecasts are not as rosy for social security, its program will only have enough reserves to pay out full benefits until 2033, and after that it will only pay 75% of benefits unless congress enacts to change the program. but congress needs to revisit social security issues sooner than that, because a separate disability program is expected to see a revenue crunch in the coming two years, as america's population ages the number of retirees relative to the number of people working is expected to
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go up, and tax revenues from the future work force are expected to fall short to pay all of those benefits. now a study by pew suggests that americans understand this problem all too well. only 14% of americans expect to receive full social security benefits when they retire in the future. even so, two-thirds say they don't want to see benefits cut, but to make sure social security stays solvent, congress has to trim the benefits, raise taxes, or increase the age at which americans can start to receive benefits. now those are hard choices at the best of times, but even harder in today's hyperpartisan environment. social security has been an important tool for aleving poverty among the elderly. mary snow has this report. >> reporter: it was the 1930s, the country was in the midst of
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the great depression, president roosevelt created a safety net by signing the social security act into law. >> this social security measure gives at least some protection to 50 million of our citizens. >> reporter: a payroll tax would be collected from paychecks when workers worked 65 and retires full benefits would be paid to them in monthly checks. historian describes it as an even fort tend to some of the time. >> there was unemployment, and unemployment provision. another problem was people would reach old age and be without any financial support and so social security, the part that we remember best today is designed to deal with the insecurity of old age by providing a income. >> reporter: some key changes shaped social security as we know it today.
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survivor benefited were added in 1939, in 1950, coverage extended to millions of workers. and benefit levels were raised. a major addition came in 1956, when divide eisenhower was president and disability benefits were added. then in 1972 under president nixon, cost of living adjustments were factored in. the 1970s brought financial trouble. there was high in unemployment and high inflation. there were concerns short-term financing for social security would run out. those worries eased as the economy improved but long-term financing became the issue that is still debated, but berkewitz says short-term outcomes would change any time soon.
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>> the benefits that are promised in the future, 2030 something they will be much higher than the benefits today. >> mary snow, al jazeera. as i explained the funding picture past 2033 is unclear. and many of you especially those of you who are hitting 65 around them are counting on that dough for your retirement. but there are other ways to save. ryan mac is here with some advice for you. ryan is mid-atlantic president of operation hope, an organization that describests as a center for financial empowerment. ryan is also the president and ceo of optimum capital management. he is a financial advisor. ryan good to see you. let's say you are your age or my age, and you believe some of the hype. let's sigh you don't trust the government, you think your
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social security will run out, it won't be there. what should you do? >> bottom line is it's time to start really addressing the tough questions. questions such as do i need cable? do i need the gym membership? do i need to start traveling local, as opposed to taking trips and pocket that money. a lot of individuals don't know their golden number of how much it will cost for them to retire. the average out for social security equates to most -- financial advisors will aabout 5% of your withdrawal -- total withdrawal should be taken that first year, and that equates to about $303,000. give or take. so are you able to really save $300,000. so if you take out that 5%, you can cover the amount that social security was providing if social accessible.
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>> uh-huh. that's not a terribly hard goal if you earn money. >> right. >> you have 19 years to save up that kind of money. do people understand that -- that, you know, if you put everything you can into your 401k, given our life expectancies these days that just investing in your 401k is probably not enough to get people through their retirement. >> yeah, look at social security the life expectancy is great point. when they first formed social security life expectancy for a male was 58 years old. again, social security, nor the 401k were really originally intended to be the soul contributors of individuals retirement. they put money away in their 401k, kind of forget about it, it might not even be the full 15% d but at least to get the company match and they say it's
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okay. it's fine, i'm saving for my retirement, but they haven't calculated how much they need to coffer their expenses. heaven forbid we be comfortable in our golden years. >> yeah, it's easier to be a little uncomfortable now. >> exactly. >> you say you would need a $300,000 nest egg now to make that make sense. how does one go about finding the golden number? >> you take your budget -- you figure out your surplus, you figure out how much you are earning after expenses, you can go on basic sites like blockberg.com, morningstardom, a lot of different websites have calculators that you can use. you take an average interest
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rate, maybe around 5 too 6%, and you put in your final age whenever you figure you are going to retire. and you figure out am i saving enough to meet my goal. there are a lot of great calculators for individuals who are not finance members like myself that have the hb 2 finance calculators, but you can go to these websites and they have very easy calculators to figure out what their gold innumber is. that's the first thing financial advisors do, they give them that strong reality check. >> ryan it is always great to have you here, thanks for joining us tonight. ryan mac. >> thank you. all right. $1 change just gobbled up another, the prices may be low, but the stakes are very high in this battle for discount retail domination. plus the reasons why americans have been paying a little less at the gas pump lately. ♪
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>> a shocking america tonight investigative report... >> you take someones hopes and dreams of childhood, and then out right steal their money >> wishing to start a family >> we lost over $20,000 trying to do surrogacy in mexico >> but left with broken hearts and empty pockets >> how much money do you owe people >> around $350,000 >> praying on the vulnerable >> i have nothing to hide, if i was a scam artist, i would have cut and run from here >> surrogacy inc. ah, got it. these wifi hotspots we get with our xfinity internet service are all over the place. hey you can stop looking. i found one. see? what do you think a wifi hotspot smells like? i'm thinking roast beef. want to get lunch?
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rights watch >> with adequate pressure you can stop anybody's abuse. >> every saturday join us for exclusive, revealing, and surprising talks with the most interesting people of our time. >> talk to al jazeera only on al jazeera america the u.s. housing market recovery remains an up and down work in progress, and the latest sign of that came in a measure of pending home sales. it's what the industry calls previously-owned homes as opposed to new homes. an index of pending home sales fell 1.1% in june compared to may, ending three months of gains. most economies had expected another slight gain as opposed to a drop. the index has dropped 7.3% if you compare it to june a year ago. a shortage of homes for sale in parts of the country combined with weak wage growth and tight
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lending standards are possible causes. the group that compiles the data expects stronger home sales in the second half of 2014 as increase in house prices starts to cool off. we'll keep an eye on that for you. two online sites are merging zillo is buying its rival. they generate revenue by selling advertising to real estate agents. both companies are growing fast but neither is profitable on an annual basis. the companies say it will give them greater access to market data and help to cut costs. there is an even bigger deal to tell you about today a marriage between two retailers that both have the world dollar in the names.
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the merger will create north america's largest discount retailer with combined annual sales of more than $18 billion and more than 13,000 stores if this deal goes through. family dollar has been struggling recently and announced it would close 370 stores. the billionaire investor owns about 9% of the stock, and has called for family dollar to sell itself. he argued that dollar general would buy the company. this is more than just about -- a story about two retailers hooking up. it's really a sign of the economic times dollar stores have thrived since the recession. making some analysts believe these stores are almost recession proof. jonathan moreno is senior editor
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at "the deal." thank you for joining us. in this case, dollar tree is a pretty well-run company, family dollar not so much. >> family dollar has been underperforming for years. i feel like they will be shuttering more locations now that they have announced this deal. once it is completed they will finish laying some folks off. they are way ahead of dollar general right now, but even if we get down to a 12,000-score level more growth could be in the future for these guys. >> who are they customers? >> so many fewer americans are driving than they were 10, 15 years ago, and they occupy a lot of these suburban rims that are becoming more densely populated. so you will see people traveling by foot. you won't go there to fill the suv up, you will walk out of
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stuff. >> am i likely to get better prices than a wal-mart? >> i wouldn't say a wal-mart or target, or even costco, because what they are selling are smaller items. you don't want to carry a gallon of milk home if you have 3 miles to drive. and i feel like one of the things that will be interesting going forward is they will be able to observe pricing pressure from all over the chain from hershey to coke. >> you normally think of mergers as not being the most consumer friendly thing, because they take out the competition and can raise prices. >> and in this case, you are arguing, while they not lower prices, but it gives them more stores.
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>> it adds convenience. and they have a prescription manager in the store or even partnering with a company like that to offer somebody a reason to come in. >> we know we have wage pressures in the economy right now. is that what benefits these stores? >> ultimately because they pursue a lower-income kind of customer, they are going to really benefit from a lower wage. they are a little bit more blue color and i feel like something like this may be market neutral for them. whereas for wal-mart it would hit them a lot harder. >> what is likely to happen with this deal? i know there are some reasons why this deal may not sale through. are there any regulatory challenges? and is there any reason why else? >> they could pursue a better offer. maybe walgreens would be
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one example of a company that would guy them. i don't necessarily see that. i think for one of the investors, karl said he wanted them to sell the family dollar, ultimately that could be a deal that is too big for a company tody just. family dollar has -- dollar general has 10,000 stores. regulators. >> is there something clearly different about these two companies? or are they basically doing the same thing, other than as we one. >> they seem to operate in the same jurisdiction. but it may be something that may be a little far out on a rural road rather than shutting down in a metropolitan area. >> why does the internet not threaten these companies? >> because i think if you are say a wal-mart, you are really
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worried about an amazon taking up your space. somebody who can deliver goods to the home very cheaply. that's not what these companies are or what these company users are going to be doing. it is also about point of sale immediately. it's like milk, egg, bread, soap on the way home kind of thing. >> very interesting. the airline interest is flying high on record profits these days. and richard branson's virgin, is taking advantage of it. it has had its first profitable year since 2007. it's mated it would raise about $115 million selling shares. they are the latest company to take the ipo plunge. 27 companies are scheduled to go
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public this week alone. tech startups have created a new resurgence in an old world. >> one technology job creates the need for five other jobs because of the services that require some food to dry live. >> i'll tell you what that could mean for harlem's struggling middle class. plus a costly court decision for vladimir putin's russia. stay with us.
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>> investigating a dark side of the law >> they don't have the money to puchace their freedom... >> for some...crime does pay... >> the bail bond industry has been good to me.... i'll make a chunk of change off the crime... fault lines... al jazeera america's hard hitting... >> they're locking the door... ground breaking... >> we have to get out of here... truth seeking... >> award winning, investigative, documentary series. chasing bail only on al jazeera america the new yorkny's harlem is one of the most famous and infamous neighborhoods in the country. the most recent data available showed an unemployment rate in harlem of nearly 19%, and while rents and property values have been on the rise, nearly a third live in poverty.
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now city officials hope to give them a boost by turning harlem into hub. >> reporter: it's a harlem renaissance for the 21st century. a tech boom fuelled by a new generation of entrepreneurs. >> we opened last fall and have 20 startup companies, and about half work on developing new therapeutics. these could be cancer drugs, and then any other half of the companies work on diagnostic devices, new implantable tools. >> reporter: harlem biospace is a tech incubator, offering a collaborative work space. >> they provide us access to a whole bunch of professionals, experts, lawyers, investors. it's basically a great place
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just to do work where people can see us in our own element. >> reporter: blocks away, startups and small business owners gather for meetings and seminars. other take advantage of the wi-fi and work space. both incubators opened in 2013 with roughly a million dollars in seed money from new york city. they are part of a wider five borough initiative sponsored by michael bloomberg. with the current network of 15 incubators, the new york economic development corporation, claims it has helped over 600 startups raise more than $125 million in venture funding. in harlem the focus is on the tech industry. >> if we want to have a place that will be tied to a major academic medical institution, harlem is really as good of
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place as any, columbia is the biggest academic institution in new york city. >> reporter: in the past four years new york city has added more than 25,000 high-tech jobs. by encouraging new tech startups to make their home in harlem, the city hopes to boost a slow but steady resurgence already underway. a consulting firm with strong ties in the community is working to help bridge the gap between the old harlem and the new. >> one technology job creates the need for five other jobs because of the services that requires, from food to dry cleaning to even places to live. >> reporter: today's tech transformation is a win for many in the city as well. though still among new york's most affordable areas, they offer beautifully renovated brown
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stones, and some of the most talked about restaurants. >> we want silicon harlem perceived the same way you per receive any tech and innovation hub, as a positive place to raise your family and work. >> david shuster, al jazeera. here to takel us more is the executive vice president for the new york city economic development association. i know you work all over the boroughs. we're just talking about harlem here, because that last point that was made in the story, we get how to gentrify harlem, and it has been happening, but do they help the neighborhood itself? because we discussed how impoverished so much of harlem is. >> i think we need to look at it in terms of the overall strategy. the tech
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sector has employed close to 300,000 new york workers. we know that these are well-paying jobs, and so we -- and as was discussed in your piece, there's also a multiplying effect, that these jobs create other jobs and therefore improve the economy. >> what is the problem we're solving for? i noticed there was a cluser in lower manhattan. when you develop one or two in harlem, what is the outcome? >> first of all we need to look at it in the context of that we know these are the jobs of the future, and we want to make sure from a work force development standpoint, that these lead to career pathways, and by putting them together, we are creating a clustering effect, that as we look out five, ten years, we are creating more and more jobs for
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all new yorkers, and in this case it's harlem. >> are we actually -- germ nating programs? >> when you are creating companies, you need talent. and we have great talent in new york city. and the major has made it very clear that we want -- that these companies will be able to develop home grown talent over the years, so it's a combination of both. as there's more companies, there's more mentors, more venture capitalists, more angel investors. >> when we talk about harlem, you are still talking about a largely african american, and hispanic community, and immigrant community. how do we make sure we don't just make these flyovers where people take the train from a
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more prosperous part of the city, go to work here, and then go home. >> we wanted to make sure we had incubators in each of the boroughs, and we have focused on multiple sectors. >> right. >> we have incubators in biotech, and fashion. and all of these as you know, and we have reported on the show, technology is infiltrating all of these sectors. >> how real is this technology thing in new york? we have talked about cornell tech. we have talked about efforts -- we had scott stringer here, talking about ways of getting kids in high school -- and the new york public education system continues to suffer, but getting them trained in the technology things they need. >> i think it can become a technology hub.
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as i said earlier, almost 300,000 are employed in technology companies. we have been growing at a rate of 21%, which is almost double the national average. there are a lot of different programs that are being worked on. we have a program that is training high school students in less-privileged areas to be exposed to technology, to -- to learn the skills, and that's one of many other programs that are being run, so i think -- you know, as we think about the jobs of the future -- >> yeah. >> -- and to keep the talent, we need to make sure that new yorkers have the opportunity to join these companies. >> we talk about how the federal government struggles with these kinds of programs, and we have discussed how cities tend to do a better job, because you are closer to the needs and resources. great conversation, eric. coming up,
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international controversy surrounds a oil tanker near texas. >> now available, the new al jazeea america mobile news app. get our exclusive in depth, reporting when you want it. a global perspective wherever you are. the major headlines in context. mashable says... you'll never miss the latest news >> they will continue looking for survivors... >> the potential for energy production is huge... >> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now
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>> on tech know, >> scientists go up in the sky, >> we're flying over a fracking field in texas >> using ground breaking technology to check air quality down below. >> formaldehyde levels were astronomical...it's bad.
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>> tech know, every saturday go where science meets humanity. >> this is some of the best driving i've every done, even though i can't see. >> tech know. >> we're here in the vortex. only on al jazeera america. russia is facing stiffer international sanctions for its role in ukraine, the european union is scheduled to meet tomorrow to consider new penalties, as russian president putin appears unwilling to back down following the downing of the malaysian aircraft. the u.s. is expected to follow europe with its own set of new sanctions. meanwhile, russia was dealt a major defeat at the international court at the hague. the court ruled that russia must pay $50 billion for taking over the assets of ucos. the former oil giant.
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russia says it will appeal the decision. but winning the award is half of the battle. the other half will be enforcing it. rory challands reports. >> reporter: the shareholders wanted $114 billion, the courts awarded them under half that. still a vast sum of money. and the director of gml says exacting this from russia could get acrimonious. >> we would expect them to -- having exhausted the -- the legal remedies that they have -- if and when they fail, then to pay their liability as ordered by the tribunal and confirmed by the courts. >> the story of how things got here involves the man who was formally russia's most high-profile prisoner. a businessman who wrestled vast fortunes and power from the
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wreckage of the soviet union. its oil company became one of russia's biggest energy firms but when putin warned the oligarch to stop medaling in pot ticks, her didn't listen. he was arrested and send to jail. and many of the assets ended up there the hands of state-run oil companies. the courts said essentially russia expropriated the investments. for many this leads to the kremlin. but russians, they see something slightly different a group of rubber barrens who came up against a stronger force and perhaps got what they deserved. >>
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there were no good guys here. in 2003, miraculously he become an almost spotless businessmen, persecuted by the kremlin and challenging putin alone in a very sort of cavalier fashion. and this is not the story the majority of russians buy. >> reporter: he actually has had nothing to do with the case, he gave apple his shares yearly a year ago, but he has expressed sat -- satisfaction with the court's decision. russia said it will appeal. >> translator: the russian side, those agencies that represent russia in its process will use all legal possibilities to defend its possibility. >> reporter: this saga certainly isn't over yet. back to this country, if you are hitting the road for a summer vacation this week, you
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will be happy to see lower gas prices when you fill up. the national average is $3.52, that's a nickel lower than a week. analysts say u.s. refinders have plenty of supply and are slashing prices to drive sales. now an update about that oil tankers steaming towards texas that i told you about last week, it's cargo is smuggled crude oil, at least that's the view of bagdad. bagdad has vowed to blacklist anyone buying from the kurds and america backs bagdad, but with iraq in chaos, the kurds are looking for a buyer. the u.s. coast guard gave this
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oil tank the okay to unload the oil at a port in texas. it is starting to look like an awkward test of u.s. foreign policy, because if this ship brought crude from kurdistan all the way to texas chances are somebody is buying, but at this point no one is saying who. across the pond, britain is looking to tap into its own energy boom and it is getting back in frac-ing. the uk said it is accepting new bids to explore for shale gas, and that could include exploration in national parks in special circumstances. david cameron says his country is going all out to search for oil. but they first have to secure planning permits, environmental permits, and health
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approvals for drilling. when they call you, what do they say? what do they need in particular? >> they say send me bodies. send me bodies. send me people. >> i'll tell you why the worker shortage might get worse before it gets better coming up. ♪ >> al jazeera america presents a breakthrough television event. borderland. six strangers. >> let's just send them back to mexico. >> experience illegal immigration up close and personal. >> it's overwhelming to see this many people that have perished. >> lost lives are relived. >> all of these people shouldn't be dead. >> will there differences bring them together or tear them apart? >> the only way to find out is to see it yourselves. >> which side of the fence are you on? borderland, sunday at 9 eastern, only on al jazeera america.
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>> this, is what we do. >> al jazeera america. the restaurant company that owns olive garden is looking for a new ceo. he is stepping down on the same day the company closed its sale of red lobster. the company's profit has fallen. the company is also saying it is changing its corporate policies to split the chairman and ceo
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roles. the country's restaurants, lounges and bars, they say don't have enough people. they need hundreds of thousands of more servers, bartenders, servers, and greeters. >> reporter: when new york city restaurants need extra staff they burn to barbara rich at the national gourmet inn ought to. >> when they call you what do particular? >> they say send me bodies. send me anybody. send me people. >> reporter: barbara is poised to serve one of the best industries in years. as of may 2014, there are 660,000 openings in the food-service industry.
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that's a more than 200,000 job increase over the same time last year. more than half of those openings are for line cooks and servers. the shortage has been steadily rising since 2009 when there were a mere 60,000 openings. they say it is having a greater effect on restaurants. >> there's more restaurant sales, especially on the higher end, and that creates more demand. >> reporter: since the recession most income gains have gone to people earning $70,000 or more. this critic says these diners demand higher service and better quality food. >> you can't just come off of the street and start cooking, because the audience for the sophisticated. >> reporter: with at least two
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years of experience, workers can command higher wages and more stable schedules. however, this does not mean 6-figure salaries even with generous tips. >> how much were you making? >> i made in the mid-40s. it's a tough business to make money in. >> reporter: industry experts say restaurants have increased wages and benefits to lure in talent. but compensation is still low. average u.s. workers earn roughly $25 an hour. but food service workers earn only about half of that. that income disparity keeps the talent down. restaurants complaining about shortages are typically in big cities. even though wages are rising, they are not enough to allow the worker to live in the cities
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where they cook. >> to live in the city you have to pick up extra shifts or work multiple jobs. >> reporter: many are ditch their jobs all together, and bringing their talent to places like nursing homes, and food develop companies. and while a purely economic solution would be to pay people more money until every last position is filled, chris floyd says that is not possible. he recruits and places restaurant talent in washington, d.c. >> all of these restaurant groups and hotels, paid people a lot of money, that would be great, but then all of the consumers would end up paying more. so your $9 burrito would be $15. >> reporter: so in the meantime, restaurants are banking on students like amanda. she says
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it's as much about the cash. >> i'm okay with the money because that's what the deal is. higher wages and an increase in the minimum wage for tipped workers are the key to reducing the high turnover rate that plagues the restaurant industry. that's the view of this man. they have training and placement programs designed to get workers in high-end restaurants jobs. te'o, we just heard this at the end of dewar ta's story. hire wages will generally result in higher are prices. >> the fact of the matter is higher wages would lead to very -- would only lead to slight price increases, and that's only if they decided to
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pass the entire cost on to the consumer. we have minimum wage laws that veriry in this country. and that doesn't include continued workers. there are seven states where every tipped worker earns the same minimum wage as the rest of the work force, and those states have higher restaurant sales and faster growing industries. so there's not this clear association that if you raise wages the industry will be negatively impacted. >> why wouldn't it be? >> i think there are a couple of potential reasons for that. one is if you are raising wages, people will be spending more on immediate goods, and that includes going out to eat a lot more. people who work in the industry enjoy spending their time out in restaurants, so if they have more money to spend they will send a lot of it there, but the
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supplies for others as well. but it also has to do with productivity and turnover. productivity comes when workers are receiving higher wages, and turnover can be gut by over 50%. and that's a huge cost. if you are constantly training new workers who aren't happy with the wages, they quit after a few months, and that reduces restaurants sales as well. >> how much of this shortage has to do with turnover? the idea that at a low wage, you'll change your job any time something at your current job upsets you. >> i think it's an increasing problem, because when the restaurant area was one of the few areas of the economy that continued to grow, we saw that
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job turnover increased. now that the economy is picking up, people are not as concerned with this, and so they are more likely to look for better-paying opportunities if they see them. >> due war ta's piece focused on a culinary school. this is not a cheap way to do things. particularly when the graduates don't think they will make that much money in the first place. free marketers say the best way to increase the wages is it will solve it's a. >> they can raise wages or look at developing career ladders within the industry. we help place people into jobs in fine-dining positions, but we also conduct a match-pair audit test where we see who gets offered jobs.
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and we see disparities around race and gender. so i think there's opportunities for restaurants to focus on more training and work force development within their own establishments and build career ladders so people see their career within that restaurant, and that would expand the level of knowledge. >> right. that career ladder is important, because unless people think they can have a lifestyle in that career, they will be looking for something else. thank you for being with us. here is something to think about, would deep throat have helped woodward and bernstein blow the lid off of the watergate scandal if he thought he was being watched? >> it's a chilling and draconian sentence... it simply cannot stand. >> this trial was a sham... >> they are truth seekers... >> all they really wanna do is find out what's happening, so they can tell people... >> governments around
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the world all united to condemn this... >> as you can see, it's still a very much volatile situation... >> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live. a bill to curtail large-scale government surveillance is expected to be introduced on capitol hill as
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erm as tomorrow. it aims to end the nsa's massive phone collection program. but since congress leaves soon, it's unlikely there will be a vote until september. but the bill could mean relief for american journalists. rising concerns about mass surveillance are making it difficult for american journalists to do their jobs, and that's a, quote, high, and chilling price to pay, end quote for national security. so says the man you are looking at now. he joins me from sanford in california. michael -- >> hello, aly. >> you have a healthy suspect for the digital world and the fact that there can actually exist privacy in this world, so what do you make of this?
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>> this report is very important. it doesn't hang its hat on a lot of fact. it hangs it on a kind of mroood. they talked to 90-some journalists, and the journalists are feels confined and more paranoid. a couple of facts line the casing of this president. one is that president obama has initiated eight prosecutions under the espionage act for purported or alleged leaking to journalists. the previous 95 years saw only 3. >> wow. >> so that's a big change. so -- go ahead. >> there is another major fact, there is a new program called the insider threat program
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promulgated by the obama administration. and this program if you are working on something secret, and you expect your colleague is leaking, you are obligated by law to report that. this is trending a sense of paranoia inside the government. and the sources are paranoid -- >> this is my question, because in the old days, if you were my source, you were in a the government and you were my source, generally speaking the only way someone would find out that you leaked to me, was if i told them, or i named you, or a court compelled me to do it, but if you leak information to me, there is a good or better chance that it will be found out from your end of the equation than from mine. so as a journalist that will have a chilling effect on me. >> and the leak may be discovered in the middle. the man in the middle is the technology. the means you
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used to communicate. so if the government surveillance is evasive enough, then in fact the journalist and the source may be that much more worried. so what are the journalists doing? the acl reports that journalists are using air-gapped computers not connected to the internet. they are using paper. counter espionage techniques. some of the most famous journalists are using very meticulous methods to hide communications -- >> but greenwald say this slows down the process because it i - cumbersome, and it will slow down the flow of information. >> it definitely is slowing down the
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flow of information and more importantly the journalists are afraid of doing their job in the first place. so not is it slow, it is also problematic. we have to decide what is more important right now, these secrets or the -- >> yeah. that is a big and important debate. michael please tell us know when you are back in town. >> i will. thank you. 100 years ago today, the hungarian empire declared war on serbia. it was the official begin of world war i. a month later, a gunman assassinated an air to the thrown in sarajevo. it quickly
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evolved in the world war i. it was the first real modern war inflicting violence on an industrial scale. new methods were used to deadly effect for the first time. when the war ended, it left 16 million dead. it was a senseless conflict. many of the trouble spots we see now in the world trace their roots to the settlement imposed at war's end. the redrawing of the borders of europe back then echos today in the violent tug of war we're seeing between east and west in ukraine. middle east, conflict between israelis and palestinians and sectarian civils in syria and iraq can trace their roots to the carving up of the ottoman empire after the war. that's our show for today, i'm ali velshi.
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thanks for joining us. ♪ ebo ♪ >> announcer: this is al jazeera. ♪ hello and welcome to the news hour and i'm at al jazeera headquarters in doha and this is what is coming up, in the next 60 minutes, gaza burns and on fire after some of the most intensive israeli attacks so far. more sorrow, more anger as yet more palestinian children are killed and still no sign of a diplomatic solution. in ukraineig